This invention relates to an electronic system and a process for enhancing advertising by delivering TV and radio commercials targeted to individual viewer's based desires and needs.
TV has been dominated by the broadcast networks which were the best available means of broad reach for advertisers. Now, however, the world is changing with 67% of U.S. homes wired for cable. Thus, cable systems are effectively replacing on-air broadcast as the actual delivery vehicle for programs.
Broadcast networks and their affiliates however, still receive the vast majority of advertiser dollars for two reasons. First, advertisers believe that placing their commercials in specific programs will ensure that they reach the right kind of viewers. Advertisers however are aware that demographic targeting is highly wasteful. For example, dog owners comprise only 30% of households, thus every Ralston-Purina commercial exposure involves 70% waste.
Target marketing is the answer. Deliver your commercial to only those who are the best prospects.
The second reason broadcasters receive the majority of advertising revenue is because they continue to attract the largest audience (approximately 60% of all viewers) despite the proliferation of cable channels which has fragmented the viewing audience. The likelihood that viewers are watching any particular commercial/advertisement is reduced by the sheer quantity of channels. Advertisers have difficulty setting values on the advertising opportunities.
Advertisers are faced with an even more aggravating situation with the advent of Digital Video Compression (DVC). DVC means that the number of programs which can be carried by any digital media will expand dramatically.
The operators of delivery systems with large capacity are frustrated by the inability to interest advertisers in any significant amount of participation. It is very difficult to demonstrate the effectiveness of advertising in an environment of a hundred or more channels of advertiser supported programming.
While a number of such systems and processes are known in this art, none of these systems and processes deal with a way to provide specific commercials to viewers needs and wants in a multichannel environment.
It would be desirable to have a system for targeting commercials to those particular consumers who represent only the best prospects for an advertiser.